The Department of Justice announced that it has entered into a settlement with Meta Platforms Inc., formerly known as Facebook Inc., to resolve allegations that Meta engaged in discriminatory advertising in violation of the Fair Housing Act (FHA). The proposed agreement was filed in a New York federal district court simultaneously with a complaint alleging
John L. Culhane, Jr.
Simplification and possible registration of nonbanks on CFPB rulemaking table
CFPB rulemaking was the subject of a new blog post by Director Chopra published last week titled “Rethinking the approach to regulations.”
Director Chopra first discussed the CFPB’s efforts “to move away from highly complicated rules that have long been a staple of consumer financial regulation and towards simpler and clearer rules.” He indicated that…
CFPB continues focus on overdraft practices
In a blog post published last week, the CFPB reported that since the beginning of 2022, it has been collecting data from supervised institutions on their overdraft and non-sufficient fund (NSF) practices and intends to use the information to identify institutions for further examination and review. The CFPB also plans to provide feedback…
CFPB issues request for information on relationship banking and customer service
The CFPB has issued a request for information (RFI) that seeks comments from the public “on what customer service obstacles consumers face in the banking market, and specifically what information would be helpful for consumers to obtain from depository institutions pursuant to section 1034(c) of the Consumer Financial Protection Act.“ Section 1034(c) requires depository institutions…
CA Supreme Court rules FTC Holder Rule’s recovery limit does not include attorney’s fees when state law provides for attorney’s fees against a holder
The California Supreme Court has ruled in Pulliam v. HNL Automotive Inc. that the FTC Holder Rule’s limit on a consumer’s “recovery” to the “amounts paid by the debtor” under the contract does include the consumer’s attorney’s fees where a buyer seeks fees from a holder under a state prevailing party statute. The decision has…
CFPB issues new circular on application of ECOA adverse action notice requirements to credit decisions using algorithms
Under Director Chopra’s leadership, the CFPB has regularly been sounding alarms about the potential for discrimination arising from the use of so-called “black box” credit models that use algorithms or other artificial intelligence (AI) tools. Today, in the second of its recently-launched Consumer Financial Protection Circulars, the CFPB addresses ECOA adverse action notice requirements in…
CFPB sends letters to CEOs of major credit card issuers regarding payment furnishing practices
The CFPB has sent letters to the chief executive officers of five major credit card issuers regarding their companies’ payment furnishing practices.
In the letters, the CFPB cites a 2020 report in which it provided data showing a decline in the share of credit card tradelines containing actual payment data since 2012. The CFPB states…
CFPB scraps no action letter and compliance assistance sandbox programs and creates new Office of Competition and Innovation
The CFPB announced earlier this week that as part of a new approach to innovation in consumer finance, it is replacing its Office of Innovation and Operation Catalyst with a new office, the Office of Competition and Innovation, and eliminating its No Action Letter (NAL) and Compliance Assistance Sandbox (CAS) programs. In its press release…
CFPB issues annual fair lending report
The CFPB recently issued its annual fair lending report covering its fair lending activity in 2021.
In the report’s discussion of its risk-based approach for prioritizing fair lending supervisory and enforcement activity, the CFPB indicates that much of its enforcement and supervision efforts were focused on advancing its priorities of advancing racial and economic equity…
Treasury Dept. revenue proposals address tax treatment of earned wage access programs
A key issue for earned wage access (EWA) programs is whether they constitute “credit” for purposes of federal consumer financial protection laws such as TILA, ECOA, and the CFPA, or under state law. The Treasury Department’s General Explanations of the Administration’s Fiscal Year 2023 Revenue Proposals includes a proposal concerning how EWA programs should be…